- 74% plan to increase tech investment to tackle regulatory issues and 94% to meet client demands for better ESG portfolio monitory, study shows
- 84% expect to boost tech investment on tracking asset class future performance
London, September 17 2024 – The global wealth management sector is increasing its investment in technology to address a growing range of issues, according to new global research* from Ortec Finance, the leading global provider of risk and return management solutions for professional investors.
Its study in the UK, Canada, Italy, the Netherlands, Germany and Switzerland among wealth managers, portfolio managers, financial advisors and financial planners found they are predicting strong growth in technology investment across a range of business areas.
Ortec Finance is launching a report How technology is helping address challenges in the wealth management sector outlining the findings which is available on its website here. The study found around three out of four (74%) questioned said they expect to increase investment in technology to help address regulatory demands with 35% expecting a dramatic increase over the next three years.
Almost all (94%) of the wealth managers and financial advisors whose organizations collectively manage approximately £1.207 trillion questioned agreed that the wealth and portfolio management industry needs to invest heavily in new technology and systems to help improve their understanding of the ESG and climate risk factors posed to the investment portfolios of their clients, as well as to funds and stocks in general.
More than eight in ten (84%) say their company will increase how much they invest over the next three years in solutions to help advisors with good estimates of key asset classes’ future performance.
Around half (46%) say investment in technology is improving efficiency while 29% say technology is enabling them to provide more client-centric service.
Tessa Kuijl, Managing Director Global Wealth Solutions at Ortec Finance said: “Investment in customer-centric advice technology by firms is addressing challenges as well as being an important enabler of client growth.
“Digital transformation in wealth management firms has accelerated in recent years, driven by the rise of the tech savvy clients who expect more personalized advice and innovative tools that enhance their investment journey towards achieving financial goals.
“To increase productivity and maintain client satisfaction, firms are implementing new IT systems to provide advanced tools to advisors and operational staff. This comes with challenges in effectively integrating the different pieces of the puzzle, all while keeping costs in check and sustaining business growth momentum.”
Ortec Finance provides wealth managers and financial advisors with scalable solutions that enable them to manage clients more efficiently and deliver more value to those clients. Its OPAL Planning tool supports banks, advisors and wealth management firms to translate client’s financial goals into an optimal investment strategy – providing forward-looking insights into whether clients are on-track regarding their investment objectives. Together with a fully integrated cash flow planning tool for a holistic view of the client situation, the OPAL Planning tool addresses both income and investment risk. Find out more: https://www.ortecfinance.com/en/solutions/goals-based-wealth-platform
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Notes to editors:
*Independent research company PureProfile interviewed 100 wealth managers and financial advisors located in the UK, Canada, Italy, the Netherlands, Germany and Switzerland whose organizations collectively manage around £1.207 trillion worth of assets for clients. The survey was conducted during April 2024.
For more information, contact:
Phil Anderson, Perception A.
phil@perceptiona.com / +44 7767 491 519